Overview

Failed payments can be a frustrating experience for both customers and merchants. As a customer, it can be disappointing to have a purchase declined or cancelled, while merchants may lose revenue and damage their reputation due to payment failures.

Understanding the reasons why payments fail can help both parties avoid such scenarios and ensure successful transactions. In this guide, we will explore some of the common reasons why payments fail.

Payment Errors

Payment errors can occur for various reasons, and they can be categorized based on whether the issue is from the customer's side or the payment gateway's side. Some of the most common types of payment errors include:

Error	Explanation
INSUFFICIENT FUNDS	There is no enough amount on the card to complete the transaction
Allowed time frame for transaction has been expired	The payment process took too long (more than 15 minutes) and then failed. Either because the bank message containing the PIN was delayed to the customer’s mobile phone, or because the customer was late in completing it.
The security number (CVC/CVV) was entered incorrectly by the cardholder	The security number (CVC/CVV) was entered incorrectly by the cardholder
DECLINED	Transaction declined by the customer’s bank. The customer should use an alternate credit card
UNSPECIFIED FAILURE	The customer’s bank has declined the transaction for an undefined cause. The customer should use an alternate credit card.
TIMED OUT	The customer’s bank was unable to be connected. The customer should attempt to process this transaction again.
REFERRED	The customer’s bank has indicated there is a problem with the credit card number.
BLOCKED	The acquirer's bank has blocked the transaction without specifying the reason. (could be suspicion of fraud) .
3-D Secure transaction attempt failed (AUTHENTICATION_FAILED)	Authentication is unsuccessful or not attempted by the cardholder.
3-D Secure transaction attempt failed (AUTHENTICATION_ATTEMPTED)	Either cardholder or card issuing bank is not 3D enrolled. 3D card authentication is unsuccessful.
3-D Secure transaction attempt failed (AUTHENTICATION_NOT_AVAILABLE)	Either cardholder or card issuing bank is not 3D enrolled. 3D card authentication is unsuccessful.
3-D Secure transaction attempt failed (Missing parameter)	There was an authentication error.
3-D Secure transaction attempt failed (Relationship not found for merchantID XXX, card type VC)	The merchant account is not configured to receive Visa transactions.
3-D Secure transaction attempt failed (Relationship not found for merchantID XXX, card type MC)	The merchant account is not configured to receive Mastercard transactions.
3-D Secure transaction attempt failed (CARD_NOT_ENROLLED)	The card was not listed by the issuing bank. The buyer needs to communicate with his bank to activate the card for online payment. Or the card number was entered incorrectly by the cardholder.
3-D Secure transaction attempt failed (Value ‘xxx’ is invalid. Cannot determine card brand.)	The card number was entered incorrectly by the cardholder.
3-D Secure transaction attempt failed (Value ‘xxx’ is invalid. Unable to determine card payment.)	The card number was entered incorrectly by the cardholder.
3-D Secure transaction attempt failed (Value ‘xxx’ is invalid. Amount exceeds maximum allowed limit)	The amount exceeded the limit per transaction.

Updated on: 03/07/2023